You just won a prize that comes with two payout choices. The first option is to get $130,000 right now and nothing herea

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answerhappygod
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You just won a prize that comes with two payout choices. The first option is to get $130,000 right now and nothing herea

Post by answerhappygod »

You just won a prize that comes with two payout choices. The
first option is to get $130,000 right now and nothing hereafter.
The second option is to get $94,000 right now and $11,000 three
years from now (and nothing after that). If your discount rate is 6
%, which should you take?
A. either option, as they are equal.
B. first option.
C. second option.
D. cannot be determined.
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